Abstract

LegalZoom.com, Inc will report quarterly results on February 19, 2026 Post Market, and this preview consolidates recent performance metrics, forecasts, and institutional perspectives for the upcoming release.

Market Forecast

Based on the company’s latest guidance and forecasts, LegalZoom.com, Inc’s current quarter revenue is estimated at $184.80 million, implying 14.89% year-over-year growth, with expected EBIT of $41.06 million (9.84% YoY growth), and EPS of $0.18 (11.39% YoY growth). The last quarter’s gross profit margin was 67.25%, net profit margin was 2.37%, and the company’s subscription-led mix suggests resilient margin support this quarter, though specific current-quarter gross and net margin forecasts were not disclosed. The main business remains driven by subscriptions at $125.36 million (65.92% of revenue), while transactions contributed $64.80 million (34.08%); the most promising segment is subscriptions due to recurring revenue and cohort retention at $125.36 million, supported by double-digit YoY momentum inferred from the overall growth pace.

Last Quarter Review

LegalZoom.com, Inc reported revenue of $190.16 million last quarter, with a gross profit margin of 67.25%, GAAP net profit attributable to the parent company of $4.51 million, a net profit margin of 2.37%, and adjusted EPS of $0.17, alongside year-over-year revenue growth of 12.79%. The quarter featured a notable sequential swing in GAAP net income, with quarter-on-quarter net profit growth of 1,795.11%, reflecting a transition from prior losses to profitability within the period. Subscriptions were the primary driver, contributing $125.36 million, while transactions reached $64.80 million, underscoring continued strength in recurring revenues and steady demand for one-time filings and services.

Current Quarter Outlook (with major analytical insights)

Subscription Services

Subscription services remain the anchor of LegalZoom.com, Inc’s model, supporting predictable cash flows and margin stability. With $125.36 million recognized last quarter and comprising 65.92% of total revenue, the subscription base provides an expanding foundation for upselling and retention, which are key to sustaining mid-teens revenue growth. This quarter’s EPS and EBIT forecasts imply improving operating efficiency, and as the subscription cohort ages, customer lifetime value should trend higher through cross-sell into registered agent, compliance, and advisory bundles. Investor attention will center on the pace of new subscriber additions versus average revenue per user; if ARPU lifts through package upgrades and price optimization, the revenue mix could further support gross margin resilience even in a cautious consumer environment.

Transactional Services

Transactional services, at $64.80 million last quarter, remain sensitive to new business formations, renewals, and macro conditions. Demand for LLC formations and related filings can ebb with seasonality and interest-rate dynamics, and the company’s ability to convert one-time buyers into subscribers will be pivotal to revenue durability. This quarter’s projected revenue increase of 14.89% implies continued healthy funnel activity, but the margin profile is typically thinner than subscriptions due to acquisition costs and service delivery expenses. Monitoring conversion rates and attachment of compliance add-ons from transactional customers will influence expectations for EBIT trajectory; if conversion improves incrementally, the business mix should tilt further toward higher-margin recurring streams, supporting the EPS forecast.

Stock Price Drivers This Quarter

Stock performance is likely to hinge on three factors: revenue growth relative to the mid-teens forecast, operating leverage evident in EBIT margin progression, and clarity on customer acquisition cost trends. A beat on revenue paired with modest margin expansion would validate the subscription growth thesis and could re-rate the stock’s near-term multiple. Conversely, any signal of subscriber churn pressure or rising acquisition costs would raise questions about sustainability of EPS growth. Updates to product bundling around compliance and registered agent services will be closely parsed for cross-sell efficacy, as well as commentary on formation trends and small-business sentiment that directly affect transactional volume.

Analyst Opinions

The prevailing tone across institutional commentary is cautiously bullish, emphasizing the durability of the subscription engine and manageable execution risk. Analysts highlight that mid-teens revenue growth paired with improving EBIT suggests a disciplined approach to expense control, while the transition to profitability in GAAP terms supports sentiment heading into the print. Several firms point to the importance of ARPU uplift and cross-sell adoption in sustaining EPS growth into the coming fiscal year. On balance, the bullish cohort underscores that LegalZoom.com, Inc’s subscription-led mix is positioned to absorb variability in formations, with near-term upside depending on margin traction and stable retention metrics.